Carlyle and Citigroup have entered a strategic partnership to deliver asset-backed financing to fintech lenders, tapping into surging demand for private credit solutions in the digital lending space.

Announced on Thursday, the collaboration will enable the two firms to share market insights and jointly pursue co-investment and structured financing opportunities. The focus will be on supporting fintech platforms through scalable, bespoke capital structures secured by underlying loan portfolios and receivables.

“Demand for scalable and tailored asset-backed financing solutions from fintech lenders has increased as they mature and seek efficient ways to fund their growth,” said Akhil Bansal, Head of Asset-Backed Finance at Carlyle.

The partnership underscores the rapid expansion of asset-backed finance within private credit markets. It also adds to Citi’s growing activity in the space, which includes a $25bn lending joint venture with Apollo Global Management.

For Carlyle, the move strengthens its footprint in one of the most dynamic corners of private credit, as institutional appetite for high-yielding, collateralised lending solutions continues to rise amid a constrained traditional banking environment.

Source: Reuters

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